§ Q2. Mr. Hannamasked the Prime Minister if he will list his official engagements for Tuesday 28th November.
§ The Prime MinisterIn addition to my duties in this House, I shall be holding further meetings with ministerial colleagues and others. This evening I shall be host at a dinner in honour of the Prime Minister of Luxembourg.
§ Mr. HannamWill the Prime Minister take time today to explain why in February 1974 he went around the mining valleys entreating the miners to smash the then Government's pay policy, saying that 16 per cent. was not far too much and that pay restraint to contain inflation was, to use his words,"utter drivel "? Is he not ashamed of that statement today?
§ The Prime MinisterI have refreshed my memory. It is clearly one of the catchphrases of the Conservative Party. I made clear at the time that because of the increase in money supply under Lord Barber and the way in which price increases were taking place —[Interruption.]
§ Mr. SpeakerOrder.
§ The Prime MinisterIt is all right, Mr. Speaker, I know that Conservative Members have to let off steam now and again. The fact is that price increases were taking place at double the rate of today. Therefore, it was not possible to expect miners or anybody else to hold down their wage claims. Today we are in a different situation. Wages went ahead last year at twice the rate of prices. We are now trying to get these into a proper relationship with each other.
§ Dr. McDonaldWill my right hon. Friend take time to study the wages council award for workers in licensed hotels and restaurants? This gives increases which will raise the highest paid in that area to only £42.80 a week and the lowest paid to £33.20. That is well below the Government's minimum wage target. What action will my right hon. Friend take to ensure that employers on wages councils pay their workers at least the minimum wage set out in the White Paper?
§ The Prime MinisterThis is not a matter to which I have directed my attention today. It is not the case that the Government have laid down a minimum wage. We have proposed a figure of which negotiators should take account when fixing their rates of pay. Whether 213 this particular wages council has done so I am not aware, but I am sure that my right hon. Friend, who has just emerged from 45 minutes' questioning, could give my hon. Friend the answer.
§ Mr. MartenIf the Prime Minister has a moment to spare today will he read the document"Britain's New Deal in Europe"on which he and too many of my right hon. and hon. Friends campaigned in the referendum? The document refers, on page 9, to the fact that fixed exchange rates put jobs at risk. Will he bear that in mind when considering the European monetary system?
§ The Prime MinisterI should very much like to examine that statement. My own view, held for many years, is that fixed exchange rates are far better than variable exchange rates. The experience of the last few years has surely demonstrated that. Both have their disadvantages, but it depends upon the conditions on which the exchange rates are fixed as to whether they are successful.
§ Mr. Frank AllaunIn his duties today, will my right hon. Friend consider immediate plans for introducing grants for 16 to 19-year-olds staying on at school? Would not that help to reduce unemployment? Is not further education far better than the waste, hopelessness and humiliation of"signing on "?
§ The Prime MinisterA Bill will be introduced on education which will include references to this principle. However, I cannot undertake that we can meet all the priorities which everyone is thrusting at us at present. There is a fixed limit on public expenditure, to which the Government intend to hold. That is the way to keep sterling stable, preserve jobs and keep prices down.
§ Mr. PriorIf the Prime Minister is concerned about sanctions and seeing that justice is done to all, including Ford, will he take time off today to write to the TUC leaders asking them why their own increases are up to 20 per cent. this year and 60 per cent. over three years? Will he report back to the House what action he intends to take against them?
§ The Prime MinisterI understand that the same question was put to my right hon. Friend the Secretary of State for Employment.
§ The Prime MinisterThis seems to be a matter on which common sense should apply, but I do not see much sign of it on the Opposition Front Bench at present.